Fraud Protection Important for Seniors
By Joe Biden, The Delaware State News
Source:
November 6, 2002
This op-ed originally appeared in THE DELAWARE STATE NEWS on October 24, 2002.
FRAUD PROTECTION IMPORTANT FOR SENIORS
By Senator Joseph R. Biden, Jr.
The notorious bank robber, Willie Sutton, was once asked why he robbed banks. He allegedly replied: "Because that’s where the money is." Unfortunately, Willie Sutton’s reasoning has been extended to a new kind of criminal activity: senior fraud. Too often, senior citizens are targeted for everything from telemarketing fraud and home-repair scams, to investment and securities fraud. Predators take advantage of seniors because they are more wealthy than the average citizen, more trusting and less cynical than younger adults, and more susceptible to being tricked, pressured, or coerced. They are less mobile, and more susceptible to scams that promise to deliver goods or services seniors find difficult to obtain on their own, and they are more likely to be at home when scam artists come calling.
Not only are seniors more easily victimized, but investigating and prosecuting senior fraud cases is more difficult than with other “white-collar” cases. Unfortunately, the victims themselves as well as the justice system often fail to view these scams as the cruel crimes they are. Sometimes, the lines between criminal and civil matters are unclear, leading to confusion over which authority will handle the case; sometimes victims are reluctant to report such incidents out of embarrassment or fear; and sometimes the victims are frail or ill and decline to participate in lengthy court proceedings.
One of the most prevalent and costly forms of senior fraud is telemarketing. During the mid-1990s, Congress undertook a major study and concluded that consumers lose an estimated $40 billion in telemarketing fraud per year. A 1994 Princeton University survey of telemarketing fraud victims found that 56 % of such victims were 50 years or older. A similar study in 1996 by the American Association for Retired Persons (AARP) offered a chilling insight into why telemarketing fraud disproportionately affects older consumers: while 90 percent of older fraud victims say they have read or heard about cases of consumer fraud, 68 percent say it is hard to spot fraud when it is happening to them!
Fortunately, there is some good news. Groups like the AARP, the Delaware Senior Fraud Patrol, and the Sheriff’s Triad Program are all dedicated to educating seniors to be alert for con artists and financial scams. And federal and state government agencies, including the U.S. Department of Justice, the Federal Trade Commission, and the Delaware Attorney General’s Office, can investigate and prosecute senior frauds.
But the best way to fight senior fraud is to prevent it from happening. Seniors can take steps to protect themselves against common financial scams. They should be cautious when making an investment. If it sounds too good to be true, it probably is. They should be careful not to give their credit card or checking account number to someone they don’t know, unless they’ve made the call themselves. They should beware of telemarketers. An answering machine or caller ID can help screen unsolicited calls. They should never give their social security number to anyone. And they need to do a little background work before purchasing a product from an unfamiliar company or doing business with an unknown individual.
Today, about 34 million Americans are over the age of 65. In 30 years, that number will double. To put it another way: one out of every eight U.S. residents is 65 or older; by 2030, that figure will be one in five. The demographic shift in American society will only increase the number of vulnerable elderly. Through education, and with effective intervention and prosecution, we can protect America’s seniors from financial predators who use telephones as effectively as guns to rob seniors of their life savings.
Let’s not let heartless criminals victimize a generation of Americans who have already given so much to preserve and protect this nation. Rather, let’s put our justice system to work to keep every senior safe and secure.
###
The writer is Delaware’s senior U.S. senator and the chairman of the Judiciary Subcommittee on Crime and Drugs.
### Copyright ©2002, The Delaware State News.
The Delaware State News Home Page: http://www.newszap.com/
